Toronto Foundation gives $1.5 million social impact investment loan to Habitat GTA
TORONTO, Aug. 4, 2016 /CNW/ - Today, together with Toronto Mayor John Tory and members of the Toronto Foundation board of directors, Habitat for Humanity Greater Toronto Area (Habitat GTA) celebrated the beginning of construction of its largest building project in the organization's history – a 50-unit townhouse development at 140 Pinery Trail in Toronto's east end.
The Pinery Trail project is the first Habitat GTA build to use a new, denser build form of "back-to-back" stacked townhouses featuring 3-, 4- and 5-bedroom units. The project will be built in three phases and will house 50 working, low-income families by 2019. In Habitat for Humanity's unique model, these families will become homeowners by paying a no-interest mortgage, capped at 30% of their annual household income, and, in lieu of a down payment, each family contributes 500 'sweat equity' volunteer hours toward the construction of their home and other Habitat homes.
Financing for the first block of 15 homes is being provided, in part, through a social impact investment from Toronto Foundation, the first of its kind in Canada. This loan will augment funds and resources provided by individuals and corporate donors and will be paid back through mortgage payments from the 15 families who will become homeowners when this first phase is completed in 2017. Importantly, as a social impact investment it aims to generate positive and measurable social outcomes in addition to financial returns.
Mayor John Tory spoke to the crowd of Habitat partner families, staff and board members of Toronto Foundation, corporate partners, volunteers and community supporters gathered for the Ribbon Cutting ceremony about the crucial role affordable housing initiatives play in Toronto's housing mix.
"We rely on organizations like Habitat for Humanity and Toronto Foundation as critical partners in building affordable housing for families in the city. Today's launch of Habitat for Humanity's largest build project ever in Toronto and Toronto Foundation's investment in this project is exactly the kind of action we were hoping for when we launched the Open Door program. The City is happy to support this project and do what we can to make it easier to build affordable housing at a faster pace," said Mayor Tory.
"The GTA is so enriched by the diversity of our citizens, but there are thousands of families who just need a hand up so they can realize their full potential," explained Ene Underwood, CEO of Habitat for Humanity GTA. "The Habitat for Humanity homeownership model provides that hand up and this new social impact investment partnership with Toronto Foundation will enable us to do that for ever increasing numbers of families."
"Habitat for Humanity GTA is a pillar organization in our city and we are delighted it is the first recipient of a Toronto Foundation social impact investment," said Richard Peddie, Vice-Chair, Board of Directors, Toronto Foundation. "With this loan, we look forward to seeing measurable improvements to the quality of life of the homeowner families," he added.
Habitat for Humanity GTA continues to fundraise for this project over the course of the coming two years. The organization is grateful for the generous support of the organizations that have already committed to support this Pinery Trail project including Toronto Real Estate Board (TREB), Building Industry and Land Development Association (BILD), Right at Home Realty, Great-West Life Realty Advisors and Great-West Life, Enbridge Gas Distribution and the Clark Family Foundation.
About Habitat for Humanity Greater Toronto Area (GTA):
Habitat for Humanity GTA is a non-profit housing organization working with communities to build homes with local families in need of affordable housing. By offering zero down payment, no-interest mortgages capped at 30 percent of a family's income, Habitat for Humanity GTA empowers families to achieve stability and self-reliance, so that they can build a better life for themselves and their children. With the support of donors and volunteers, we build homes along with partner families in Brampton, Caledon, Toronto, and York Region, serving two-thirds of the GTA. Since 1988, Habitat GTA has built more than 300 homes in partnership with families. Habitat GTA is one of more than 1,400 Habitat for Humanity affiliates worldwide sharing a common vision and purpose.
Habitat for Humanity GTA also operates 10 Habitat ReStore retail home improvement stores across the GTA, which sell donated, new and gently-used home furnishing and renovation materials at a fraction of the original price. ReStore proceeds go directly toward building Habitat homes while also helping the environment, by diverting thousands of tons of household materials from landfill.
To learn more, follow us on Twitter @HabitatGTA, Facebook Habitat for Humanity GTA or visit www.habitatgta.ca
About Toronto Foundation:
Established in 1981, Toronto Foundation is one of the top 191 Community Foundations in Canada. We pool philanthropic dollars and facilitate charitable donations for maximum community impact. Our individual, family and organizational funds number more than 500 and we administer more than $400 million in assets. Through the Vital Toronto Fund we engage in city building, mobilizing people and resources to increase the quality of life in Toronto.
SOURCE Habitat for Humanity GTA
For further information: Carol Davies, Senior Director, Marketing & Communications, Habitat for Humanity GTA, Office: 416-755-7353 ex: 259, [email protected]; Julia Howell, VP, Communications & Marketing, Toronto Foundation, Office: 416-921-2035 ex: 213, [email protected]; Karen Lorenowicz, Communications & Public Relations Officer, Habitat for Humanity GTA, Office: 416-245-2475, Mobile: 416-347-9661, [email protected]